The Ministry of Defense made purchases involving illegal payments and fake bulletproof vests.
At the start of a large-scale attack, authorities in Kyiv encountered an unexpected issue. The country lacked any weapons importers due to Ukraine only exporting weapons throughout its years of independence. A full-scale war required swift decisions, as reported by… UP.
Admittedly, rushing often provided an opportunity for unscrupulous individuals to profit from the war.
This was evident in the so-called Turkish body armor incident. Attempts to deceive a few people profit involved in military supplies became public knowledge in August last year. However, the specific details of this incident and the individuals involved only recently came to light, along with the outcome of the millions of seized hryvnia during the searches.
According to sources in positions of power and within the arms market as informed by UP, the government actively engaged all participants in the domestic arms market in spring 2022 to procure the maximum amount of ammunition, weapons, and other supplies from abroad.
A market participant clarified that “Zelensky commanded: the source and method of purchase are unimportant; the country requires all possible weapons.”
Following this approach, the Ministry of Defense issued official “confidential” correspondence to companies and individuals involved in procuring weapons after conducting checks.
The scale of individuals involved in this endeavor can be understood by recalling instances where these “official representatives” of the MOU even competed against each other to obtain affordable ammunition and equipment from European and other suppliers.
Back in the spring of 2022, the UE heard a lot of such stories both from officials and from the suppliers themselves.
There were egregious situations where multiple Ukrainian suppliers competed against each other, leading to inflated weapon prices. Furthermore, partner governments were willing to provide our country with supplies as gratuitous aid.
During an interview with UP, Defense Minister Alexei Reznikov told recounted numerous similar incidents. Subsequently, the head of the Ministry of Defense convened importers, reprimanding them, but the situations persisted.
“The arms market is particularly specific. Idealism has minimal place here. Hence, it's unsurprising that numerous unscrupulous individuals sought to capitalize on our misfortune. But this market has no other types of people. Thus, each time, comprehensive scrutiny and control are necessary. Otherwise, nothing would be procured.”, — elaborated one of the key figures in the current government during a conversation with UP in the summer of 2022.
One of the instances involving “official representatives” who turned out to be fraudsters will be further elaborated.
This involves a contract worth 16 million dollars, where a Turkish supplier of bulletproof vests unexpectedly had Ukrainian “contractors” who nearly swindled the state and the army for almost 600 thousand dollars.
It also concerns a former official from the Ministry of Defense from whom millions of hryvnias and hundreds of thousands in foreign currency were suddenly confiscated and subsequently returned just as unexpectedly.
The Ministry of Defense's purchases: The story of Turkish armor, or Not thieves, but subcontractors
March 8, in the middle of the conflict close to Kyiv, two Ukrainian citizens went to Turkey. There they discussed supplying body armor for the Ukrainian Armed Forces.
These individuals – entrepreneurs Dmitry Buryak and Konstantin Krivopust – were not government officials, but they were also not ordinary volunteers. They presented a letter from Ukrainian Minister of Defense Oleksiy Reznikov, signed just a few days before the negotiations, which authorized them to represent the Ministry of Defense in buying goods for the troops.
According to the materials of the criminal case, Buryak and Krivopust met with the leaders of local company FarmTR Gida Tarim in Turkey and suggested participating in government contracts.
The Turks agreed, and on March 14 they signed a deal with the Ministry of Defense to supply 30,000 body armor of the 4th protection class. The contract is worth 16.655 million euros, or 542.755 million hryvnias based on the exchange rate at that time.
The cost of each body armor was 552.7 euros (18,000 hryvnias). Whether this is fair depends on the materials used. Such details are unknown. In January 2023, this amount will increase for metal armor, but not ceramic ones.
However, at the start of the major conflict, the market was destroyed, and demand was much higher than supply. According to UP among armor manufacturers, they were being sold for 250, 500, and even 1000 dollars at that time.
On April 1, the Turks received 100% of the advance payment at once. After that, Buryak and Krivopust visited the Turkish supplier again. According to investigators, they demanded a portion of the money.
And the Turks were subjected to these requirements. Despite the fact that the word “kickback” suggests itself here, officially it was a subcontracting agreement. Ukrainian entrepreneurs allegedly promised the Turks to supply a part – a thousand broniks – instead of them.
The subcontractor was Wallartis Solutions, registered in the offshore Kingdom of Bahrain. It is half-owned by Ukrainian Mikhail Andrukhovych and a Bahraini citizen.
There are multiple company websites with this name on the internet. One states that Wallartis Solutions is involved in brokerage services and logistics, another mentions IT services, and a third focuses on introducing green energy technologies. All sites appeared in late 2021 and 2022.
The investigation believes that Buryak and Krivopust brought in Wallartis Solutions to their plan, convincing its Ukrainian owner to collaborate.
In a matter of days, the company received payment from the Turks for its supposed subcontract. This amounted to 580 thousand dollars (approximately 19.67 million hryvnia) – 3% of the Ministry of Defense contract value. However, the promised body armor deliveries never materialized.
It's unknown whether the Turks themselves imported anything; this is not mentioned in the case file. The Ministry of Defense also did not provide this information when asked by UP.
It appears that Ukraine did not receive body armor at that time. Two months later, the Ministry of Defense reported unfulfilled supplies to the police, leading to the initiation of a criminal case.
The entire story was labeled as “fraud” by the investigation. Suspicions in January involved Buryak, Krivopust, and Andrukhovych. The court granted the arrest of the last two. However, all three are wanted and are likely abroad.
The lawyer of Andrukhovych informed UP that none of the suspects had been questioned.
Procurements made by the Ministry of Defense: illegal payments and fake bulletproof vests
Procurements made by the Ministry of Defense: illegal payments and fake bulletproof vests
All three individuals suspected of fraud related to armored vehicles are evading the investigation, likely abroad.
The main witnesses of the investigation are Turkish businesspeople. Seven months after signing the contract, in November, they agreed with the Ministry of Defense to refund the state 16.655 million euros for the contract, along with a penalty of 143.7 thousand euros. This process has only just begun.
Officials are not included in the formal plot of the case. However, several circumstances indicate that the “swindlers” most likely had connections with the Ministry of Defense.
Procurements made by the Ministry of Defense: illegal payments and fake bulletproof vests
One of the witnesses informed the investigation that information about the Turkish supplier, from whom armor can be ordered, was conveyed to the Deputy Minister of Defense. The specific deputy is unknown, as well as the details of the witness who communicated with them. These statements are mentioned in public court decisions, but the names are not disclosed there.
Investigators found out that Buryak and Krivopust somehow found out when Ukraine sent funds to Turkey.
Ultimately, the entrepreneurs obtained a letter from the Ministry of Defense. One of the prosecutors in the case confirmed to UP that the document was genuine.
Simultaneously, Dmitry Buryak is a fairly well-known entrepreneur in Kyiv with Russian origins, primarily involved in real estate development. He left the country on February 23, the day before a full-scale war.
Ukrainian Konstantin Krivopust is not very recognizable, but his name is known. He is a lawyer involved in several legal entities as a director or founder. Since 2012, an individual with that name has been under investigation for fictitious business and misappropriation of funds. The case was closed in 2020, with the prosecutor refusing to press charges.
The contract between the Ministry of Defense and the Turkish company FarmTR Gida Tarim also raises concerns. Public information about this company indicates that it is not involved in military activities at all, but agriculture.
The Ministry of Defense declined to provide UP with any details regarding the signing of the contract for bulletproof vests. They did not disclose who negotiated with the Turks, the time frame for supplying body armor, or whether the contract was partially fulfilled.
The department opted not to respond to inquiries about the involvement of Buryak and Krivopust in public procurements.
All of this was referred to as “the secret of the investigation” in the MOU. Furthermore, it was warned that revealing it carries criminal liability. The UE is accountable for the signature. Deputy Minister Vyacheslav Shapovalovwho has already resigned because of a corruption scandal involving overpriced food purchases for the army.
But this story becomes more understandable thanks to one of the episodes. And the names that appear in it.
According to UP, not only the official identified as the main culprit, but also other individuals, including the former Deputy Minister of Defense and current leader at the Progress company, Alexander Mironyuk, are being investigated in connection with the bulletproof vests issue.
“Sofa” million, or not stolen, but borrowed
Ukrainian media was abuzz with news about searches at the current head of the Ministry of Defense's public procurement department, Bohdan Khmelnytsky, at the end of the summer of 2022. He was suspected of involvement in the bulletproof vest case. Bohdan Khmelnytsky. The official was suspected of being involved in the bulletproof vest case.
The UP's sources claimed that a large sum of money was found with the Ministry of Defense official, allegedly hidden in a sofa, but the exact amount was not confirmed at that time.
In response to our inquiry, the Ministry of Defense confirmed that there were searches at Khmelnytsky’s place, but denied any funds being confiscated. acknowledgedthat there were searches at Khmelnytsky’s, but they categorically denied that at least some funds were confiscated.
The UP later found out that the Ministry of Defense was telling the truth. No money was confiscated during the search of the current head of the procurement department.
The money was found during a search of the former Deputy Minister Oleksandr Mironyuk, who, until his dismissal in 2021, was in charge of the procurement department. He also happens to be involved in the bulletproof vest case.
Mironyuk was found with 17,078,400 hryvnias, 100,000 dollars, and 100,380 euros.
Alexander Mironyuk // Procurement of the Ministry of Defense: “kickbacks” and fake bulletproof vests
On August 27, 2022, the investigator decided that these funds were material evidence in the criminal proceedings. They sought to seize the money in court, but encountered complications.
On September 7, the Pechersk District Court judge refused to arrest Mironyuk’s millions, despite approving the seizure of other assets found during the searches in this case. arrested on other property seized during searches in this case.
On September 12, the Pechersk Court finally arrested the money. However, these decisions were not documented in the court register, as explained by the OP in the Judicial Information Systems.
On November 17, Mironyuk’s lawyers managed to obtain a ruling from the Kyiv Court of Appeal for the cancellation of the arrest. cancellation arrest. This decision was only published in the registry at the request of the UE.
The judge stated that the investigators did not provide enough evidence that the money was linked to the crime, and there was no information about Mironyuk's involvement in the case or a notice of suspicion in the Unified Register of Pre-trial Investigations.
The investigators claim that they believe Mironyuk was involved. The police are sure that he might have organized the criminal scheme.
Even after the court decided, the money was not given back to the person involved. So, their representatives have to ask the court again to get the funds.
On December 8, 2022, the Pechersk Court also commanded the police to immediately return Mironyuk has millions because the arrest has already been lifted from them. Interestingly, the prosecution representatives did not attend this meeting. This decision was made public quietly, on December 27th, New Year’s Eve.
One question arises: how did the official, who worked for years in state-owned companies and in the government, get so much money in the first place?
Since access to the register of declarations is closed during martial law, it's impossible to review the latest data on Mironyuk’s condition.
However, let’s say, according to his declaration for 2019, he had an income of 1.8 million hryvnia, 15 thousand dollars in cash and an apartment in Khmelnitsky.
At the request of the UE, to the NAPC reportedthat carried out the verification of Mironyuk’s declarations for 2018 and 2019. As evidenced by her resultsno significant violations were identified by the Agency.
Obviously, at work in the ministry, it would be impossible for an official to legally collect so much cash that was seized during the search.
As the UP managed to find out, it turns out that immediately after the searches, Mironyuk provided the court with a “document” stating that the money from the sofa was not his, he had borrowed it.
A notarized statement, concluded a week after the searches, states that in January 2022, all the seized money was lent to Mironyuk by Eleonora Duminsh, an 86-year-old resident of Kharkiv.
Purchases of the Ministry of Defense: “kickbacks” and fake bulletproof vests
Mrs. Eleanor has severe vision problems that prevented her from writing the application herself, so it had to be done by a notary.
One of the prosecutors in the case confirmed to the UP the authenticity of the document we had received.
As we managed to find out, Mrs. Duminsh is a relative of the founders of the Kharkiv “XADO-Holding”, which, among other things, is engaged in rifle production. In addition, since 2016, Eleonora Duminsh has been registered as a sole trader for wholesale trade, and during registration she indicated an e-mail and a phone number belonging to XADO.
This holding has a long-standing working relationship with the state-owned special exporter Progress, in which Mironyuk is employed before and after his work in the Ministry of Defense.
At one time, Progress had exclusive rights to promote XADO products for export.
The UE asked for a comment about the “loan” to all of Mironyuk’s phone numbers we have, but we did not receive a response until the time of publication.
At the same time, NABU, at the request of the CP, whether the stated data was checked for possible illegal enrichment of the ex-official of the MOU, reported that it had not investigated the mentioned proceedings and had no information about the seized media.
The NAPC told us that Mironyuk had not yet filed data on a significant change in his property status in connection with a probable “loan” for such a large amount.
***
Recently, the Ministry of Defense got into a corruption scandal with overpricing for the purchase of food. The story of Turkish armor, as it may seem at first glance, is about something completely different.
Formally, about how the state issued a mandate of trust to scammers who used it in their own interests. The Ministry of Defense reacted to the theft long before the publicity and is trying to return the funds.
But how did the scammers get into the top-secret and closed sphere of defense supplies anyway? How did they know about the contract, the progress of the agreement, the transfer of money? Could this have happened if someone inside the Department of Defense hadn’t helped them with this?
If you look more broadly, then all the high-profile corruption scandals of recent days are more similar to each other than it seems.
All these stories are combined by an incomprehensible desire for a decent person to snatch something from the state flow of money for their own pocket.
Steal, “bite off” – even despite the understanding that bulletproof vests not delivered due to your actions are hundreds of lost or crippled lives.
Snatch “some hundred thousand” for the future, while others lose everything.
Sonya Lukashova, Roman Romanyuk, translation Skeleton.Info
